Copper inventories in major regions across the country continued to build up this week [SMM weekly data].

SMM February 5 News:

Data Brief: As of Thursday, February 5, SMM's national copper inventories in mainstream regions increased 4.03% WoW, with total inventory up 62,700 mt YoY, while the same period last year was during the Chinese New Year holiday.

Specifically, copper cathode inventories in the Shanghai area showed a significant buildup, driven by concentrated arrivals of domestic supply, while imported copper arrivals were relatively low, and warehouse withdrawals maintained a normal pace. Inventories in Jiangsu saw a slight decrease, with overall limited change and stable inbound and outbound flows. Inventories in Guangdong remained steady, as the local market gradually entered holiday mode, presenting a weak supply-demand balance.

Looking ahead, supply side, the opening of the import window is expected to boost arrivals of imported copper, coupled with steady domestic supply arrivals, leading to an overall increase in supply. Demand side, with the Chinese New Year holiday approaching, downstream enterprises are successively halting production for the holiday, and end-use demand is gradually weakening. Considering both supply and demand, copper market is expected to show a pattern of increasing supply and weakening consumption next week, with weekly inventories entering a buildup phase.